Interest rates will continue to stay low, with the Reserve Bank (RBA) this week not even considering any change to the official cash rate, which currently sits at 0.1%.

RBA Governor Philip Lowe again warned lenders that the Bank will be watching them. “Housing credit growth has picked up, with strong demand from owner-occupiers, especially first-home buyers”, he said.

“Given the environment of rising housing prices and low interest rates, the Bank will be monitoring trends in housing borrowing carefully and it is important that lending standards are maintained.”